Elderly people gather in a park in front of residential buildings at an affordable housing complex in Chongqing, China (Photographer: Qilai Shen/Bloomberg)

Demand For Aavas Financiers’ IPO Remains Muted On Second Day 

Aavas Financiers Ltd.’s Rs 1,734-crore initial public offering was subscribed 0.29 times on its second day of bidding today.

The portion allocated to qualified institutional buyers was subscribed 0.81 times the number of shares on offer, as per data shared by Axis Capital. The segment for non-institutional investors saw muted demand and was subscribed only 0.12 times. Shares set aside for the retail segment of the company was subscribed 0.07 times.

The housing finance company has issued fresh shares worth Rs 400 crore and has allocated 1.62 crore shares at Rs 818-821 apiece. The company received bids for 4.3 lakh shares at the end of its second day of bidding today.

The firm raised Rs 520 crore from anchor investors that include AU Small Finance Bank, Abu Dhabi Investment Authority-Behave, DSP Blackrock Tax Saver Fund, SBI Life, Bajaj Life Insurance and Morgan Stanley India Investment. It allocated 63.36 lakh equity shares at Rs 821 per script.

The company’s bidding was managed by ICICI Securities Ltd., Citigroup Global Markets India Private Ltd., Edelweiss Financial Services Ltd. and Spark Capital Advisors (India) Pvt Ltd.